Retail Food Group Limited (RFG)



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General Information
Company Name: Retail Food Group Limited
Stock Code: RFG
Website: www.rfg.com.au
GICS Sub-Industry: Restaurants
Market Cap ($M): 891
Equiv. Shares (M): 156

Current Price Data+
Current Price Open High Low Last Close Volume Price Movement
 $ 5.700 $ 5.660 $ 5.710 $ 5.650 $ 5.600 750,722 $ 0.100  1.786 %

Current Broker Consensus Recommendation more
Recommendation: Hold (3)
Recommendation Date: 18th Dec 2014
Brokers Surveyed: 3

Company Overview

Business Description:
Retail Food Group Limited (RFG) is an Australian retail food brand managers and franchisors. RFG is also a supplier and roaster of coffee and affiliated products. The company has two main operational divisions being Franchising and Wholesale/Retail Operations.

Strategy Analysis:
Eighty percent of outlets are located in high foot traffic shopping centres to take advantage of small change customer spending. Stagnant shopping centre development has forced management to consider non-traditional sites to continue outlet growth. Franchisee health is a focus with efforts centred on the fortification of average weekly sales via menu enhancement and product innovation, and leveraging input suppliers. Management also pursue acquisitions which provide opportunities to increase EPS, scale, synergies, organic growth and intellectual property. Acquisitions will not necessarily be limited to the food and franchising sector. Retail Food Group reported NPAT up 0.72% to $14.63m for the half-year ended 31 December 2012. Revenues from ordinary activities were $70.81m, up 25.5% from last year. Diluted EPS was 12.5 cents compared to 13.4 cents last year. Net operating cash flow was $10.29m compared to $13.14m last year. The interim dividend declared was 9.5 cents, compared with 8.5 cents last year.


Financial Summary
Year to Jun NPAT EPS EPS chg (%) PER DPS Yield (%) Franking (%)
2016  F -- 37.3 17.1 15.3 29.4 5.2 --
2015  F -- 31.8 20.2 17.9 25.6 4.5 --
2014  A 36.9 26.5 2.2 16.3 22.0 5.1 100.0
Source: Aspect actuals / Thomson IBES estimates

Peer Comparison
EPS Growth (%) P/E (%) Dividend Yield (%)
Company Mkt Cap 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F 2014 A 2015 F 2016 F
Domino's Pizza Enterprises (DMP) $2,029 M 0.2812 0.2219 0.2451 43.7732 35.8229 28.7721 1.56 1.93 2.34
Retail Food Group (RFG) $875 M 0.0223 0.2017 0.1710 21.1480 17.5990 15.0295 3.93 4.57 5.25

Market Comparison
Earnings P/E Ratio P/B Ratio P/E Growth P/S Ratio
RFG 1.01 19.7 2.66 1.06 4.72
Market 0.90 15.0 1.19 1.94 1.48
Sector 1.36 17.7 2.55 1.38 2.44

Directors
Name Position Start Date
Mr Anthony James Alford Chief Executive Officer,Managing Director 28 October 2003
Mr Stephen Edward Lonie Non-Executive Director 24 June 2013
Mrs Jessica Buchanan Non-Executive Director 29 May 2012
Mr Colin Archer Non-Executive Director,Non-Executive Chairman 12 April 2006

Management
Name Position
Peter McGettigan Chief Financial Officer
Anthony Mark Connors Chief Legal Officer,Company Secretary
Andre Nell Chief Operating Officer
Gary Alford Director of Franchise
Tracey Catterall Managing Director of Michel's Patisserie Brand System

Substantial Shareholders
Holding Name
9,000,000 (6.20%) Thorney Pty Ltd
16,964,742 (11.70%) Mawer Investment Management Ltd
22,957,004 (15.80%) Mr Anthony (Tony) Alford

Calendar of Events
Date Event
08 October 2015 Report (Annual)
27 August 2015 Report (Prelim)
27 February 2015 Report (Interim)
© 2011 Morningstar, Inc. All rights reserved. The data and content contained herein are not guaranteed to be accurate, complete or timely. Neither Morningstar, nor its affiliates nor their content providers will have any liability for use or distribution of any of this information. To the extent that any of the content above constitutes advice, it is general advice that has been prepared by Morningstar Australasia Pty Ltd ABN: 95 090 665 544, AFSL: 240892 (a subsidiary of Morningstar, Inc.), without reference to your objectives, financial situation or needs. Before acting on any advice, you should consider the appropriateness of the advice and we recommend you obtain financial, legal and taxation advice before making any financial investment decision. If applicable investors should obtain the relevant product disclosure statement and consider it before making any decision to invest. Some material is copyright and published under licence from ASX Operations Pty Limited ACN 004 523 782 ("ASXO"). DISCLOSURE: Employees may have an interest in the securities discussed in this report. Please refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/fsg.asp.

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